Differences with Conventional Bank Islamic Bank

There was no difference in general between commercial banks and Islamic banks are visible. Broadly speaking, the differences were apparent between conventional banks and Islamic banks. The concept of interest, interest is a plus for any capital investment applied by conventional banks, however, in the Islamic concept of interest is forbidden. 

The difference between Islamic banks and conventional banks in general can be seen in the table below 

Table 1 

Differences with Conventional Bank Islamic Bank

Islamic Bank	Conventional Bank
Based on the principle of profit sharing, sale, and lease	Using the device of interest in its operations
Doing investment activities to the halal sector alone	Doing business sector investment into Halal and Haram
Relationships with customers in the form of partnership	Relationships with customers in the form of creditor-debtor
Profit and falah oriented	Profit oriented
There is Sharia Supervisory Board which oversees the banking operations	There are no similar councils

Broadly speaking, the difference between conventional banks and Islamic banks, we can see the table above. From the above table we can see the difference between conventional banks and Islamic banks. Five differences are a starting point the development of Islamic banking in Indonesia and in the world. Developmental differences between Islamic banks and conventional banks continue to grow and form the detailed. The table below we can see the development of the difference between Islamic banks and conventional banks. 

Table 2 

Differences with Conventional Bank Islamic Bank

Differences	Islamic Bank	Conventional Bank
Functions and Activities of the Bank	Investment managers, investors, social, financial services.	Intermediary units, financial services.
Mechanisms and Business Objects	Anti maghrib (gambling / gambling / speculation, gharar / no element of fraud, usury, bathil / damaged, invalid).	Not firmly opposed to the gambling / gambling / speculation / gharar, riba bathil / defective.
Relationships with Customers	Partnership. Do not value-free. Money as a medium of exchange, not a commodity. Interest is prohibited in many forms. Using the principle of profit-sharing and real transactions.	Lending and borrowing. Value-free. Money as a commodity is maintained. Exchange rate as an instrument against the owner of the money that is set in advance.
Functions and Roles	Institute of intermediary. Investment Agency. Investors. The service provider payment traffic (not against the sharia). Is the policy fund, ZIS (social functioning). The relationship with clients is a partnership (investors reciprocal investment managers).	Intermediary institutions. Collector of public funds and lend it back to the  community in exchange for a loan interest. Payment traffic services provider. Customer relationship with the bank is a debtor-creditor relationship.
Business Risks	Faced with the bank to the customer with the principles of justice and fairness. Do not know the difference in the likelihood of negative.	Bank risks not directly related to the debtor, the debtor risks not directly related to bank. The possibility of a negative difference between the income and interest expense.
The Monitoring System	The existence of sharia supervisory board to ensure that operations do not deviate from Islamic banks as well as the demands of morality bank managers and customers in accordance with akhlaqul karimah.	Aspects of morality are often violated in the absence of religious values ​​that underlie its operations.
Profit Sharing	Determination of the amount ratios / profit sharing ratio at the time the contract is made with reference to the possibility of profit and loss The ratio of the results based on the amount of profit earned. For the results depend on the profits of the project being undertaken. If the business loss, the loss will be shared by both parties The number of profit sharing increased with the increase in the number of income There is no doubting the validity of the results	Determination of interest made ​​at the time the assumption should always be profitable. The percentage based on the amount of money (capital) is desired. Fixed interest payments as promised without any consideration of whether the project runs by the customer profit or loss. Total interest payments did not increase even though the amount of profit doubled or economic circumstances are 'booming'. The existence of interest is doubtful (if not condemned) by all religions.

From these two tables are presented, Islamic banks will develop equibilirium achieve within a curve. Hopefully Islamic banks is growing and debate among economists the world can bring economic benefits to the justice